ISLAMABAD: The Ministry of Law told a Senate subcommittee on Friday that the Special Communications Organisation could be permitted to operate commercially in the country.

“The laws of the land do not bar the SCO from operating commercially beyond Azad Jammu and Kashmir and Gilgit-Baltistan,” the ministry’s senior consultant Mohsin Abbasi told a subcommittee of the Senate Committee on Delegated Legislation.

The subcommittee has spent several months considering the SCO’s demand for complete autonomy to operate as a commercial entity and expand its services across the country.

Auditor general’s office to weigh in on SCO proposal seeking complete autonomy; response expected by next Senate subcommittee meeting

The organisation, a public sector organisation under the Ministry of IT that is headed by a serving military officer, has argued that it is losing business to competitors in the telecommunications sector.

The SCO was established in 1976 to develop, operate and maintain telecommunications services in AJK and GB only, and applied for a licence to operate commercially in 2013.

It has also proposed a legislative amendment seekingtax exemptions on its income, assets, turnover, sales and customs duties on imports and exports, and requested that it continue to be funded by the federal government.

The Minitry of IT has disputed the law ministry’s opinion, and exercising its right for further guidance, has referred the case to the office of the auditor general, the committee was told.

Committee chairman Senator Daud Khan Achakzai said the ministry was creating unnecessary obstacles for the SCO.

“This committee has spent the last eight months on the issue, and the ministry cannot make up its mind on whether the SCO can be given completely autonomy,” he said.

IT ministry Member Legal Ameena Sohail argued that allowing a government-backed SCO to operate commercially would have serious repercussions on the telecommunications industry and hurt investor confidence, causing adverse effects on economic growth.

The government and the Senate Standing Committee on IT have opposed the proposal to allow the SCO to operate as a commercial entity throughout Pakistan. The government has argued that giving the military-run organisation autonomy would be a violation of international and national laws.

The IT ministry also believes that such a move would hurt economic growth and the telecommunications sector, which is against the idea, in particular.

However, the subcommittee was told that a response from the auditor general’s office on the matter, through the law ministry, was awaited.

Mr Abbasi, the law ministry consultant, said: “If the AG’s opinion is in consonance with the law ministry, it will be considered final.

“If the AG disagrees [with allowing the] SCO to operate on a commercial basis, the case will be forwarded to the prime minister, who will refer it to the Cabinet Division for an opinion.”

The subcommittee members asked that the case be resolved quickly, and the law ministry is expected to submit a response from the auditor general when the subcommittee meets again on Thursday.

Published in Dawn, December 30th, 2017